Must cover: fees (often % of collected rent), authority, reporting, term
Before you read
Test yourself first: 5 questions
Question 1 of 5
A property management agreement creates which type of agency relationship between the owner and the property manager?
Answer: A. A property manager is typically a general agent because the management agreement authorizes a continuous range of acts (leasing, collecting rent, maintenance) on the owner's behalf, unlike a special agent who handles one transaction.
Question 2 of 5
Which of the following is NOT typically required to be included in a written property management agreement?
Answer: B. A management agreement specifies the fee, the manager's authority, and the term/termination terms, but the owner's personal credit score is irrelevant to the management relationship.
Question 3 of 5
A property management agreement creates which relationship between owner and manager?
Answer: A. A property manager is typically a general agent, authorized to handle ongoing management tasks for the owner.
Question 4 of 5
The contract that establishes an agency relationship between a property owner and a property manager is the:
Answer: B. A property management agreement is the contract that creates the agency relationship, defining the manager's authority, duties, compensation, and the scope of services for the owner.
Question 5 of 5
A property manager's compensation is most commonly:
Answer: A. Management fees are typically a percentage of collected rent (sometimes plus leasing fees), aligning the manager with strong occupancy.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Creates a GENERAL agency between owner and property manager
- Must cover: fees (often % of collected rent), authority, reporting, term
- Manager's #1 duty: maximize owner's return while protecting the asset
- Trust accounting for rents & deposits — same commingling rules
- Manager must obey fair housing in tenant selection — no 'preferred tenant profile'
Property Management Agreement: FAQs
Is Property Management Agreement on the real estate exam?
Yes. Leasing & Property Management is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
